Is investing in a company you are a client a good plan?

Qonto, Goodvest, Wecasa… In just a few hours, these three companies collected millions from their customers. However, they are not interested in money. Or at least not only.

If you’re a Qonto, Goodvest or Wecasa customer, you’ve probably received a message inviting you to participate fundraising. Because in order to finance themselves, these three companies decided to turn to… their own customers. And they are not the only ones. In recent months, this practice has been increasing, p 101 million euros collected in 2021 compared to 57 million in 2020, i.e. record annual growth +77% (1).

And yet crowdequity, or equity crowdfunding, has been around for many years. And this method of financing is very common in Anglo-Saxon countries. In addition, Qonto and Goodvest passed through the British Crowdcube platform. It’s more than 1300 operations its active. And already great successes, as in Finary. Last March, fintech took off 2.17 million euros in 21 minutes from 983 investors.

Qonto is no exception. The European leader of corporate financial management is hoping for a promotion 1 million euros. At 6:30 a.m. he harvested five times moreand 1800 customers entered the capital. Success was also on the agenda for Goodvest, which achieved its goal 250,000 euros in just two hours, according to its co-founder and CEO Joseph Chueifati.

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We are not interested in money

A real tour de force. However, these two companies are not interested in money. Or at least not only. We don’t need itsmiles Alexander Prot, co-founder and CEO of Qonto, which just completed a record fundraising 486 million euros. Goodvest, for its part, just completed its first round 2 million euros.

But then why resort to crowdfunding? We have always created our offer together with our customers, so it seemed obvious to us to let them benefit from the fruits of Goodvest’s success, explains Joseph Chueifati. There is also a high stakes fame: Our primary engagement channel is referrals. A shareholder customer is an even more loyal and engaged customer.

Crowdcube above all else solutions for engagementno funding, confirms Pauline Pham, director of Crowdcube in France in a column An echo. The companies we work with in France are supported venture capital fund. They are sure of the key role played by theirs community in their development.

In addition, both companies do not exclude the return of the cover. Given the success of this joint fundraiser and the interest it can represent both for our users and for the development of Goodvest, this type of transaction is likely to be replayed– says Joseph Chueifati.

However, investment funds still have a bright future ahead of them. This approach does not conflict with more traditional fundraising, it complements, – explains Fanny Knusmann, brand manager of Wecasa, a home services platform. It is also important for us to accompany institutional investors and experiences that can bring us a strategic expertiseadds Joseph Chueifati.

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Individuals can take advantage of these transactions to invest in a company they already know well. Our clients get access to our fundraising on the same terms as our established investors and can count on capital gains in the long term if Goodvest continues to grow well, says Joseph Chueifati.

Investing in young growth companies can be profitable: according to a study by France Invest and Grant Thornton (2)investments in unlisted companies will bring profits 11.7% average annual return for the horizon 15 years. That’s twice as much 5.4% returns per year served by the CAC 40 over the same period.

Of course, this practice is not without danger. Because, like any investment, equity crowdfunding has risk of capital loss. AND 90% of startups failincluding 10% in the first year, recalls Claude Calmon, founder of the consulting firm Calmon Partners.

But beyond just the financial aspect, crowdequity is redefining the relationship between companies and their customers. This is an opportunity for our clients to participate in a project in which they believe, says Joseph Shueifati. This is also a way go beyond the simple status of a consumercomplete Fanny Knusmann.

The success of the formula also lies in its simplicity. It only takes a few clicks to become a shareholder in these unlisted companies. AND entrance ticket, often available, allows anyone to participate in the adventure as an investor. Thus, the share price was fixed 1 euro for Wecasa, 10 euros for Goodvest and 138 euros for Konto.

Why invest in an unlisted company

(1) Barometer of crowdfunding in France 2021, created by Mazars for Financement Participatif France.

(2) 35th edition of the France Invest and Grant Thornton barometer on the activities of French players in private equity funds and infrastructure funds.